General News
Defending the foundations for connectivity
By Engr. Gbenga Adebayo
In 2001, when the first GSM call was made in Nigeria how many of us would have envisaged the digital world that we live in today? The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.
Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services. Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations. System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.
While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides. It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development. We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.
The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing. Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone. The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.
At the heart of the challenge the industry faces is the issue of rising costs. Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated. The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag. It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.
But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations. We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.
This is a critical moment for the industry. How we approach and resolve it will define the future of Nigeria’s digital economy. If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.
Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power. If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble. For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel. For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.
We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives. But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute. Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.
We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.
Engr. Gbenga Adebayo is the Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON)
Federal Executive Council (FEC) has approved the launch of four satellites aimed at strengthening Earth observation capabilities and improving national security, according to Uche Nnaji, minister of Innovation, Science and Technology.
Uche Nnaji, minister of Innovation, Science and Technology
Speaking at the 22nd National Council on Innovation, Science and Technology (NCIST) in Abuja, Nnaji said the satellites include three Earth Observation models and one Radar Aperture satellite. The council meeting was held from 12 to 14 May under the theme: “Research, Develop, Innovate and Commercialise: A Cycle for National Prosperity.”
“Just last week, the Federal Executive Council approved that Nigeria launch four satellites—three Earth Observation satellites and one search satellite,” the minister said.
According to him, the Radar Aperture satellite will be capable of capturing images under various conditions, including nighttime and rainfall.
“The search satellite is the one that will pick images both day, night, during rain, every time of the day, and that is technology in play. The military can use it effectively,” he said.
Nnaji noted that this will reduce Nigeria’s reliance on purchasing data and imagery for monitoring remote areas like the Sambisa forest.
On policy development, he said an inter-ministerial committee is reviewing the National Science, Technology and Innovation Policy and working on establishing a National Research and Innovation Fund.
“As a country, we can no longer afford to ignore the widening gap between research and real-world impact,” Nnaji said. “For decades, valuable research conducted in our universities and institutions has remained underutilised, disconnected from industries and policy.”
He pointed out the challenges faced by young innovators, including a lack of structured support and financing to transform ideas into marketable products.
“Let this 22nd edition of NCIST mark the beginning of a new chapter, one where every research has a roadmap to industry,” he said.
Nnaji called for sustained efforts from researchers, private investors, and regulators to ensure innovations are protected and supported. “The government must build and enforce regulatory frameworks that protect, support, and incentivise innovation at every level,” he added.
He said the council’s resolutions would be forwarded to FEC for formal adoption and reaffirmed the ministry’s plan to restore the council’s annual meeting schedule after delays pushed the 22nd edition into 2025.
Esuabana Nko-Asanye, the ministry’s permanent secretary, described the meeting as a platform to promote inter-sectoral collaboration and address challenges such as insecurity, unemployment, and climate change. She said 109 memoranda were presented, highlighting proposals on issues like commercialising research, boosting funding for innovation, and building capacity in emerging technologies.
“The richness and diversity of these submissions underscore the growing recognition of science, technology and innovation as a cornerstone of Nigeria’s sustainable development,” Nko-Asanye said.
George Akume, secretary to the Government of the Federation, represented by Morris Mbaeri, said building a resilient innovation ecosystem is key to national development. “This cycle is very essential in addressing real-world challenges and unlocking long-term prosperity,” he said.
Azikiwe Onwualu, president, African University of Science and Technology (AUST), urged the government to increase research and development spending to 3% of GDP and proposed the establishment of more RDIC clusters that integrate academia, industry, and startups.
He said: “We should operationalise the National Research and Innovation Council Fund to coordinate RDIC efforts as envisaged in the STI policy.”
Shell Plc has reported a significant 122% increase in operational oil spill incidents in Nigeria in 2024, driven largely by equipment failures and persistent sabotage, according to its newly released 2024 Annual Report and Accounts.
The company’s Nigerian subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), which operates the SPDC Joint Venture (JV), recorded 20 oil spill incidents exceeding 100 kilograms during the year up from just 9 incidents in 2023.
The report attributed the surge in operational spills primarily to defective pipeline clamps.
These clamps, which were locally manufactured and used in pipeline repairs after the removal of illegal connections, were found to have factory faults.
Shell confirmed that the manufacturer has since recalled the faulty batch, and SPDC has begun replacing the affected components.
As a result, the volume of operational oil and product spills spiked to 0.37 thousand tonnes, compared to just 0.005 thousand tonnes recorded in the previous year.
Two major spills one onshore along the Trans Niger Pipeline and one offshore at a terminal loading buoy accounted for 89% of the total volume.
SPDC JV has said it is implementing a comprehensive pipeline maintenance and replacement program aimed at reducing such incidents in the future.
Beyond equipment failures, Shell identified third-party interference and crude oil theft as a continuing challenge, noting that 81% of spill incidents in 2024 were caused by sabotage.
There were 84 theft- or sabotage-related spills totaling 2,000 tonnes of crude oil in 2024, compared to 139 such incidents amounting to 1,400 tonnes in 2023.
While the number of incidents declined, the volume spilled increased, indicating that larger-scale breaches may have occurred despite improved surveillance and protection measures.
Shell’s report highlighted ongoing efforts to combat vandalism and protect infrastructure.
The SPDC JV continued to deploy aerial surveillance, drone monitoring, and on-ground patrols to detect and respond to illegal activities and spills more rapidly.
Key anti-theft protection measures were further enhanced in 2024, including:
Reinforced wellhead and manifold cages
Use of anti-theft nuts
Upgraded CCTV systems and networking technologies
In addition, Shell reported ongoing collaboration with Nigerian government security agencies to maintain surveillance and secure the pipeline network and operational areas.
“SPDC JV continued to work closely with authorities to address third-party interference, particularly along our pipelines,” the report stated.
Shell reiterated its commitment to reducing environmental impact through proactive infrastructure upgrades and improved response systems, while also calling for stronger enforcement against crude oil theft and pipeline vandalism issues that have plagued Nigeria’s energy sector for years.
Dr. Obiageli Amadiobi, director general and chief executive officer, National Office for Technology Acquisition and Promotion (NOTAP), has advocated Franchising as a sustainable business model for the South East entrepreneurs.
Dr. Obiageli Amadiobi, DG/CEO, NOTAP
She made this call during a one-day sensitization and unveiling of the NOTAP Franchising Guidelines for south east stakeholders and entrepreneurs for a successful franchising business.
The DG who was represented at the event by Mr. Emeka Orji, head of Department Corporate Planning (CP) Department, NOTAP, said that franchising business model had globally been proven to be successfully sustainable due to low business risks associated with it.
She defines franchising as a contractual business relationship between a licensor (the franchisor) and a licensee (the franchisee) that allows the business owner to use the licensor’s brand and methods of doing business to distribute products or provide services to consumers.
She added that in essence, the franchisee pays the franchisor for the opportunity to use his established business model and brand name in running his business.
Dr. Amadiobi said the essence of the workshop was not just organised to explore the possibility of adopting franchising as a strategic platform to transform local dreams into national and global business realities.
She described the programme as an opportunity for business owners and intending entrepreneurs from the Zone to latch into the huge and untapped potentials provided by franchising business models in becoming business and brand ambassadors.
With over 800,000 franchise establishments across the globe, generating trillions in revenue, she described Franchising as a pathway to economic empowerment.
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